The US-based top cryptocurrency exchange Coinbase has announced its plans to enable customers to deposit paychecks straight into their online accounts.
Advantages Coinbase’s direct deposit service
Customers in the US will be able to utilize Coinbase’s direct deposit service for any proportion of their salary, the company said Monday. They have the option of keeping their money in dollars or transferring it to cryptocurrencies like bitcoin without incurring any costs.
Customers may more quickly access their crypto-first financial services and be ready for any transaction for either buying or selling, according to Max Branzburg, vice president of product at Coinbase, in a blog post. They are committed to providing their 68 million customers with the most reliable complete range of crypto-first financial services.
Feature Will Be Added In Coming Weeks
Customers complained that regular transfers from their bank accounts to Coinbase were time-consuming and cumbersome, prompting the firm to create the service, which will go live in the coming weeks. According to Coinbase, its goal is to provide quick access to the cryptocurrency market.
Coinbase said it would employ an FDIC-insured bank partner for a direct deposit but did not identify which one. For its Coinbase rewards card, the firm collaborates with MetaBank.
Direct deposit in other online financial applications
Direct deposit is already available in other popular online financial applications. Chime and SoFi, both online banking firms, provide the feature as part of a broader suite of services, while PayPal and stock trading app Robinhood also allow users to deposit their paychecks.
Coinbase is introducing new products while attempting to navigate a complex regulatory environment. The firm abandoned plans for a high-interest loan product last week after the Securities and Exchange Commission threatened to sue over it.
The Securities and Exchange Commission chairman, Gary Gensler, has stepped up his criticism of the cryptocurrency sector. Gensler advocated for greater crypto regulation in testimony before the Senate Banking Committee earlier this month. He also urged Congress for more funding to guarantee investor safety, arguing that most digital assets exchanged should be registered with the agency.
In April, Coinbase became public through a direct listing. Since its previous public offering, the stock has fallen 40% and traded at $229.40 on Monday. Its movements are frequently mirrored by bitcoin’s volatility, which has dropped by 28% during the same period.
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